A/HRC/14/29 for a transparent and thorough overview of supply chains, an issue which could be addressed at the upcoming OECD Guidelines review. Some participants noted that labour standards along the supply chain are particularly relevant in sectors such as toys, electronics, agriculture and cotton and that supply chain management is a way to deal with the issue but it is unable to resolve the lack of national institutions and processes on basic labour inspections. 39. Other participants raised the issue of how to conduct consultations as part of due diligence. Companies often choose the consultants who perform the consultations and also decide on the aspects of the consultations that may not correspond to the needs of the community. It was recommended that the Special Representative encourage companies to ensure that they are talking with the right people and about the right issues when undertaking community engagement and consultation. 40. Some participants stressed the need for the free, prior and informed consent (FPIC) of indigenous peoples, as a precondition for business operations, especially in the mining sector. It was emphasized that companies should consult with indigenous people and start to operate only once they have their FPIC. 41. It was suggested that the notion of stakeholder dialogue should be changed to that of rights-holder dialogue. This is an important distinction, since stakeholders are often powerful groups whereas rights-holders are often the most vulnerable. B. Conceptual issues and challenges Summary of expert presentations 42. Ebele Okobi-Harris (Director, Business and Human Rights Program, Yahoo! Inc.) presented the operational challenges companies may face when confronted with potential conflicts between national laws and international human rights norms and how her company has addressed those challenges. She noted that Internet communications and technology companies are powerful platforms that play a critical role in promoting and protecting the freedom of expression and privacy and, as a result, certain States try to control the dissemination of information. Companies therefore face a challenge because they, like citizens, are subject to domestic law. In response to this challenge, Yahoo! participated in the creation of the Global Network Initiative (GNI), which is a multistakeholder dialogue in collaboration with industry counterparts, NGOs, socially responsible investment firms, academics and other interested stakeholders. The initiative created an accountability and public reporting framework that included collaborative and multi-stakeholder approaches to solving business and human rights issues, tools and guidance for companies on how to engage with communities, guidance for NGOs that wish to collaborate with companies, and guidance for companies on how to overcome conflicts between domestic law and international human rights norms. Ms. Okobi-Harris concluded by stressing that the option of just “leave the country” that is sometimes proposed to companies when they operate in situations where there is a conflict between national law and international human rights norms is not necessarily shared by citizens who depend on the services provided by IT companies, and it overlooks the challenges faced by national companies operating in those circumstances. 43. Mads Holst Jensen (Adviser, Danish Institute for Human Rights) discussed the different approaches a company may take in promoting human rights when there is a conflict between national laws and international laws. He suggested that a company should consider whether the rights at stake are fundamental, e.g. threatening physical security. If that is the case and if there are no national mechanisms to address the situation, the company should consider disinvesting if it cannot avoid being connected to a possible GE.10-12935 11

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